Stock Spam Works... For The Spammers
from the as-if-you-didn't-expect-that dept
Last year, one guy got a lot of attention for tracking a portfolio of stocks made up entirely of ticker symbols promoted in various spam messages. We all get them in our spam folder: stocks insisting that some unknown penny stock is about to shoot up to some ridiculous level. They've been around for ages. Obviously, the spams must work, because otherwise why would they continue? While most people know better than to buy a stock based on a spam message, there are clearly enough suckers out there to make it worthwhile. A new study has checked in on the numbers, doing a bit more academic version of the portfolio tracker above. They found that (as you would expect) people who invest in stock that was spammed tend to lose money. However, the people (the spammers) who bought the stock a day or two before the spam tend to make a decent return (sometimes depending on how proficient they are as spammers). While this certainly fits into the "no duh" category of things for most of us, it's still fascinating to see that there are enough gullible folks out there who actually buy stock based on spam.